2. If a company has 900,000 shares of common stock authorized, and has 750,000 shares issued, and holds 30,000 shares of common stock as treasury stock, the general ledger account for common stock, $1 par value would have a balance of a. $870,000 b. $720,000 c. $750,000 d. $150,000 e. none of the above 3. a. All of the following balances are normally found in a corporation's stockholders' equity section except common stock b. dividends in arrears. C. retained earnings. d. paid-in capital in excess of par. none of the above e 4. Preferred stock would least likely have which characteristic? a. The right of the holder to vote at stockholders' meetings. b. The right of the corporation to redeem or retire the stock. C. Preference as to assets upon liquidation of the corporation. d. Preference as to dividends. e none of the above 5. A company purchases 1,500 shares of its $25 par value stock at $35 per share. It then reissues 500 shares at $40 per share. The entry upon reissue of the stock would include a credit to a. Cash for $2,500. b. Paid-in Capital from Treasury Stock for $2,500. c. Retained Earnings for $2,500. d Treasury Stock for $2,500. none of the above e 6. Prepare a bank reconciliation (on scrap paper) using the following information: a. December 31 balance per bank statement, $250 b. December 31 balance per ledger account, $750 c. Checks outstanding totaled $500 d. Deposit in transit to the bank totaled $750 e. The bank collected $250 on a note receivable that the company was not aware of. f. The bank returned a $500 check marked "NSF" from I. M. Broke, one of the company's customers; the bank also reduced the account by $500. The correct balance of cash on December 31 is: a. $1,000 b. $750 c. $500 d. $250 e. none of the above 250 500 7. The journal entry for the above bank reconciliation would be: a. Cash 250 Notes Receivable Accounts Receivable -I. M. Broke b. Deposit in transit 750 Outstanding checks 500 Cash 250 c. Cash 250 Outstanding checks 500 Deposit in transit 750 d. Accounts Receivable - 1. M. Broke 500 Notes Receivable Cash 250 250 e. none of the above